Rebuild Operating Models: Profitability, Investment and Scale (Masters' thesis)

• A fact-based comparison of the current rebuild model and a vertically integrated model.
• Want to accelerate the transformation towards a more sustainable future?
• At Epiroc, your thesis is more than an academic project. It's an opportunity to contribute to innovations that help make mining and construction safer, more productive, and more sustainable.
• Working alongside experienced colleagues, you'll be part of a collaborative and inclusive environment where ideas are encouraged, and learning never stops. This is your chance to turn knowledge into impact while growing both professionally and personally.
• Functional area: Marketing
• Recruiting manager: Maria Tutumlu, Global Product Line Manager Circular Services
• Email: [email protected]

Education background

Mechanical Engineering / Industrial Engineering / Business and Administration

The ideal candidate has an interest in

Circular economy

Sustainability

• Mining and industrial equipment
• Service business development
• Business transformation
• Level of thesis project: Master Thesis.
• Number of students in the project: Preferably two students.

Background

Rebuilds support Circular Services by extending equipment life and creating customer value through productivity and lower total cost of ownership. The immediate business need is not a broad ecosystem description, but a decision-ready comparison of alternative ways to execute rebuilds.

The study will test whether greater vertical integration can improve profitability and competitiveness, and under which machine, location and volume conditions it is economically justified. The work should support decisions for both Epiroc and mixed-fleet rebuild opportunities.

Project setup and student differentiation

Preferably two students working as one thesis team, with clearly differentiated and interdependent workstreams:

Workstream 1

• Phase 1: Value-chain and profitability model
• Primary focus: Map the bill of material and rebuild process for selected machine models. Quantify purchased, subcontracted, repaired and assembled content, costs, revenue, margin and value capture under each operating model.
• Distict output: Validated cost and profitability model by machine and process step.

Workstream 2

Phase 2: Capability, investment and scale model

Primary focus: Define facilities, equipment, tooling, competence, test capability, working capital and ramp-up requirements. Calculate break-even volume, ROI and sensitivity to utilization, labor cost and subcontracting. Investment case, minimum viable volume and site/model decision criteria.

Distict output: Investment case, minimum viable volume and site/model decision criteria.

Mission

• Model 1: Current / hybrid rebuild model
• Purchase a significant share of new parts and assemblies.
• Subcontract a large portion of specialist repair and rebuild activity.
• Repair selected components internally where capability exists.
• Complete final assembly, testing and quality assurance in-house.
• Model 2: Vertically integrated model

•

• Model 2: Vertically integrated model
• Perform substantially more component repair, machining, rebuild and assembly in-house.
• Purchase only where internal manufacture or repair is not feasible or economical.
• Subcontract primarily clearly defined specialist activities, with engine rebuild as the initial reference case.
• Operate as a one-stop rebuild facility capable of supporting Epiroc and selected mixed-fleet machines.
• The final definitions must be validated with internal stakeholders before modelling. The thesis must document all inclusions, exclusions and assumptions so the comparison remains transparent and reusable.
• Machine and case scope
• Select 1-2 representative machine models per product line with sufficient bill of material, cost and rebuild-history data.
• Include at least one Epiroc machine and, if reliable data is available, one mixed-fleet case.
• For each machine, trace the overall machine bill of material downward to major systems and high-value components.
• Prioritize components that materially influence total rebuild cost, margin, lead time or investment needs.
• Use one or more actual completed rebuilds to validate assumptions where data quality permits.

Research questions

The thesis should seek to answer questions such as

• How does the end-to-end value chain differ between the current/hybrid model and the vertically integrated model for the selected machines?
• For each model, what is purchased new, repaired in-house, manufactured in-house, subcontracted and finally assembled or tested in-house?
• What are the total rebuild cost, gross profit, contribution margin and value retained internally under each model?
• Which components or process steps create the largest difference in profitability, lead time, quality risk and working-capital exposure?
• What facilities, equipment, tooling, skills, certifications, test capability and supplier support are required for each model?
• What initial and recurring investments are required, and what minimum annual rebuild volume or utilization level supports an acceptable payback and ROI?
• How sensitive is the result to labor cost, component recovery rate, subcontractor pricing, utilization, warranty provision, logistics and machine mix?
• Under what conditions should Epiroc use the current model, increase selective in-house capability, or establish a more vertically integrated rebuild operation?

Scope

The study is expected to include

A. BOM-to-value mapping

• Create a structured make/buy/repair/subcontract map for each selected machine.
• Link major BOM (Bill of material) items and process steps to quantity, sourcing route, labor hours, material cost, subcontract cost, logistics and lead time.
• Identify core and reusable components, expected recovery rates and major uncertainty drivers.

B. Profitability comparison

• Build comparable machine-level profit-and-loss views for both operating models.
• Separate material, internal labor, overhead, subcontracting, freight, warranty and rework assumptions.
• Show value capture by process step and quantify margin improvement or deterioration.
• Avoid double counting transfer prices, internal mark-ups or shared overhead.

C. Investment and capacity case

• Estimate CAPEX for equipment, tooling, test stands, facility adaptation and digital/quality systems.
• Estimate ramp-up cost, competence development, working capital and recurring fixed cost.
• Model practical capacity, bottlenecks, utilization and annual throughput.
• Calculate break-even volume, payback period and ROI using an agreed internal financial method.

D. Sensitivity and risk

• Run scenarios for machine volume and mix, labor rates, recovery yield, exchange rates, supplier pricing, utilization and warranty/rework.
• Identify operational, technical, commercial, quality, legal and cross-border constraints that may change the preferred model.
• State data gaps and confidence level for each major conclusion.

Methodology

The student is expected to use a combination of

• Literature review on remanufacturing, vertical integration and make-or-buy decisions.
• Internal interviews with rebuild, engineering, sourcing, finance, operations, sales and quality stakeholders.
• BOM, cost, labor, supplier and historical rebuild-data analysis.
• Process mapping and activity-based cost modelling.
• Site or virtual workshop observations where practical.
• Scenario and sensitivity analysis.
• Structured validation workshops for assumptions and conclusions.

Expected Deliverables

The final thesis should provide

• A reusable make/buy/repair/subcontract methodology and process map.
• A machine-level BOM and value-capture model for each selected case.
• A side-by-side profitability comparison of the two operating models.
• An investment, capacity, break-even and ROI model with sensitivity analysis.
• A decision matrix showing when each operating model is appropriate by market, site, machine type and volume.
• A prioritized list of capabilities to internalize, retain with suppliers or develop through partnerships.
• A phased implementation recommendation, including pilot scope, key assumptions to validate and data required before investment approval.
• An executive summary and management presentation with clear decisions, risks and next steps.

Out of scope

• A complete global mapping of every rebuild site, stakeholder or workshop.
• Detailed engineering design of workshop equipment or production cells.
• Final investment approval, supplier selection or legal entity design.
• Claims about sustainability benefits unless supported by available and traceable data.

Success criteria

• The two operating models are defined consistently and compared on the same scope.
• Calculations are traceable from source data to management conclusions.
• Key assumptions and data limitations are explicit.
• The models can be reused for additional machines and markets.
• Recommendations identify concrete decisions and validation actions, not only broad opportunities.

Qualification

Required

• Master’s student in Industrial Engineering, Mechanical Engineering, Business Administration, Supply Chain Management, Circular Economy, or a related field.
• Ability to work with BOM, cost and operational data.
• Strong analytical and problem-solving skills with the ability to structure complex business and operational challenges.
• Interest in aftermarket services, remanufacturing, circular business models, and sustainable solutions.
• Ability to collect, analyze, and synthesize information from multiple stakeholders across different functions and regions.
• Excellent written and verbal communication skills in English.

Preferred

• Experience with business process mapping, operating model design, or value chain analysis.
• Knowledge of mining, construction, industrial equipment, or heavy machinery industries.
• Understanding of fleet management, maintenance, repair, and overhaul (MRO), or rebuild operations.
• Familiarity with circular economy principles and asset lifecycle management.
• Experience using analytical tools such as Power BI, Excel, Visio, Miro, or similar modeling and visualization tools.

Personal Attributes

• Self-driven and capable of working independently.
• Curious and eager to challenge existing ways of working.
• Strong stakeholder management and interview skills.
• Structured, detail-oriented, and able to translate findings into actionable recommendations.
• Comfortable working in an international and cross-functional environment.

This thesis is particularly suitable for students interested in

• Circular business models
• Service business development
• Strategic operations
• Sustainability and remanufacturing
• Asset lifecycle optimization
• Digitalization of service operations

How to apply

Does this sound interesting, and do you feel this is a match?

Log in to the recruitment system. If you are new to the system, you need to start by making a profile. Do not forget to attach your CV and a short letter about your-self, describing why you are applying for this thesis. Please note that we do not accept applications via email.

In this process, we review applications continuously and the project can be filled before last day of application. We recommend to send your application in as soon possible, but no later than November 15.

Company presentation

Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. With cutting-edge technology, Epiroc develops and produces innovative drill rigs, rock excavation and construction equipment, and provides world-class service and consumables solutions for automation, digitalization and electrification.

It all starts with people. The world needs metals and minerals for the energy transition and our cities and infrastructure must be developed to serve a growing population. To succeed, we need to speed up the shift towards more sustainable mining and construction industries. We at Epiroc accelerate this transformation, together with customers and business partners in more than 150 countries, by developing and providing innovative and safe equipment, digital solutions, and aftermarket support.

All new thinkers are welcome. We are looking for those who want to develop, grow, and dare to think new. In Epiroc we attract, develop, and retain diverse talent valuing authenticity and unique perspectives, driving our spirit of innovation. We foster an inclusive culture where diversity isn't just a goal but a part of our values and way of working. This is how we do business for a sustainable future.  Learn more at www.epiroc.com